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I agree that this is currently the case and everyone should do as you say currently. I don’t agree that this should be the case in the future because I think our priorities are backward. Parking is our way of faking adoption (people taking nbt off the open market) and it comes at a steep inflation cost. We need to be leveraging NSR for short term (day to day) peg maintenance and using park rates for medium term supply control (on the scale of months). Long term (year scales) nothing will benefit us but true nbt adoption.
That said, I agree now is definately the time for higher park rates.
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Can you explain how the actual park rates are calculated? Its not really described in the whitepaper as I see it.
Is it a weighted average over the last 10,000 blocks? If so, then we should absolutely set much larger interest rates right now than we actually want to have in order to have a larger slope and should reduce them later. We also should take staking exchanges into the equation who surely don’t set any park rates.
So if I now want to set let’s say 10% for 131072 blocks, and I want this to happen soon, what value should I approximately insert? Surely much more than 10%!
The share day weighted median vote over the last 2000 blocks are the protocol rates, with the restriction that they can’t rise more than 1% each day (actually 1440 blocks).
Shareholders have voted to take the weighting out (so each vote has equal weighting) and raise the maximum increase to 3% per day, but those changes haven’t been implemented yet.
I have experienced some trouble with data feeds lately: the client would not pull them without clicking “ok” on the corresponding dialog box. The issue was fixed manually somewhat on my client but I am still not sure why I got the issue in the first place as I described in the following link: Bug - Nu client does not pull the data feeds
Would there be someone else with the same issue?
If yes, that might explain why the rates have not increased yet.
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Shareholders - please vote for 2 adjacent durations, for now.
Also, it’s one thing to vote for a parking rate and it’s another to actually park.
I have nubits in my wallet - do I have to actually park them within the UI to actually freeze them and contribute for the peg?
No, as long as you do not put them for sales.
What if move them to a market to buy stuff like btc or nsr?
Hi @cryptog
The current park rates in the Nu network are:
32768 blocks: 0.000187% APR
65536 blocks: 0.001670% APR
131072 blocks: 0.008722% APR
We have now:
22.8 days: 0.3%
1.5 months: 1.340%
3.0 months: 3.5 %
I think we should increase much more the rates for shorter periods than 3.0 months.
I am confused by how park rates affect the peg. When BTC price is looking like to fall to a trader, say by 50% in the next month, you would need to offer more than 100% interest in the next month in order to persuade the trader to park instead of selling to the buy wall.
If you do offer the astronomical rate, you are basically paying the speculator and everyone else who parks the profit of a successful speculative trade (~100% a month in this example). This would be insane.
Am I wrong?
Good remark.
Well the way I see it is that half of traders may decide to sell over the markets for a potential relatively big gain with less probability, half of traders may decide to park because it represents a certain but smaller gain.
OK in my example above, to profit by selling Nubits is when BTC is expected to rise, not to fall. Park rate is offered so the trader gives up on speculative selling for park interest. Although a rising BTC (if it really rises as expected!) does make mopping up the printed NBT (interest paid) easier, using park rates to defend the buy wall seems still a questionable thing to do.
Yes there are several factors if a more sophisticated model is to be made. But the idea is the same. Shareholders have to figure out the right rates in a dynamic environment. That is very hard speculation.
The way out, as I see, is sticking to organic growth of Nu, only maintaining the NBT/USD peg.
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While everyone is free to raise whatever questions they like, the historical record indicates parking is an effective and economical method for creating buy support. Between a month and two months ago 67,000 NuBits were parked as a result of park rates rising to 9% for just a three month term. The average actual premium paid was likely around 1.5% for parked NuBits. It did raise the buy wall. It certainly works.
If park rates remain necessary for an extend period it means NSR needs to be sold and NBT burned to permanently alter the currency supply. Park rates are intended as a short term mechanism to increase buy support that can be quickly deployed.
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